Question Answers for Homework Help

Answer 1) A. Declaration.
Answer 2) B. $100,000.
Answer 3) A. $0
Answer 4) A. Preferred $10,000 Common $20,000
Answer 5) B. $100
Answer 6) C. $48,000
Answer 7) B. Paid-in capital and retained earnings accounts
Answer 8) D. 225,000
Answer 9) A. The sale of treasury stock at less than cost.
Answer 10) A. January 15, Year 1
Answer 11) A. $135,000
Answer 12) A. Market value at date of declaration
Answer 13) A. $0
Answer 14) C. 235000
Answer 15) C. Retained Earnings- Decrease, Total Equity- No effect
Answer 16) C. Additional paid-in capital when the subscription is collected
Answer 17) A. Declaration and distribution of stock dividend
Answer 18) A. Ignored
Answer 19) B. 400
Answer 20) A. 105000
Pre tax financial income 200000
Income tax expense current 57875
Income tax expense deferred 2700
Net income 231500
Effective tax rate 25%
Income tax payable 47875
Deferred tax assets 1500
Deferred tax liability 4200